A Brief Look at the Origins of Lending

When trying to discover the origins of lending you might find yourself looking at a lot of unrelated information that doesn't really tell you what it is that you want to know.

The origins of lending go back to at least biblical times, with mentions of lending even being mentioned in certain places in the Bible. Even with modern banking and lending, the origins of lending can go back several hundred years? all the way to the Middle Ages and before.

The Middle Ages and the Renaissance are likely the best places to begin looking for information on this subject, as these times were when financial records were beginning to be kept in earnest and lending in its modern form was beginning to truly develop.

Lending in the early Middle Ages

If you look at the early Middle Ages to try to discover the origins of lending, you'll find that loans were often more or less one-sided and always afforded a large benefit to the lender.

Landowners and the wealthy would make loans to poorer individuals while charging high interest rates or making the borrower work to pay off the debt? in many cases, the lender would even increase the terms of the loan once is was nearly repaid so that the borrower would have to continue to make payments or work without pay for the lender.

If a borrower was unable to repay their loan they could even be thrown into a debtor's prison, held without fair trial until someone was able to pay off their debt or other arrangements for their release were made.

Lending during the Renaissance

During the Renaissance and late Middle Ages, the origins of lending began to take a turn more toward what lending is today. Individuals known as moneylenders would ply their trade in market squares and other business and merchant venues, setting up a bench known as a "banca" (from which we get the modern English word, "bank") on which they would conduct their transactions.

Several moneylenders might work in the same area, and the competition tended to reduce some of the extravagant interest rates that were created by landowners and other officials in previous centuries? this didn't, however, mean that the trade of the moneylender was completely fair or righteous.

The moneylenders would still strive to make as much of a profit as they could from borrowers, and might go so far as to falsify their records of payments and transactions so as to scam more money out of the less fortunate or uneducated.

Debtor's prisons were popular, and in some areas were very crowded with people who had barely been getting by in the outside world and had little hope of release.

Lending in the modern world

As time has progressed, so have the methods of making and receiving loans? it's easy to see how far things have come since the early origins of lending.

The predecessors of modern banks developed in conjunction with the Industrial Revolution, and in the decades and centuries that followed most major countries worldwide have abolished most types of unfair lending as well as debtor's prisons.

Interest rates at banks, finance companies, and online lenders are controlled by both local and national factors, and modern lenders strive to provide a valuable service to both the public and businesses by providing reasonable interest rates and definite terms.

Lending has grown from a practice of a few individuals looking for profits to a major industry on which the basis of the modern world is built? an example of how from simple origins can come great things.

You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

---

Do You Qualify for a Loan?

Like most people, you will probably wait until submitting a... Read More

What are Personal Loans?

As the term implies, Personal loans are simply loans for... Read More

Auto Loan Buying Tips

Have you ever felt like you bought an auto and... Read More

What are Secured Loans?

Secured loans are one of the most popular personal loans... Read More

Are You In The Market For a Car Loan?

Car loans are a tempting way to purchase a new... Read More

Is a Microloan Right for You?

If you've been tossing around an idea for a small... Read More

Unsecured Loans ? Substituting Secured Loans

Watching more and more people fall in the trap laid... Read More

6 Key Points to Evaluate Online Lenders

The internet is teeming with lenders who are vying for... Read More

Home Equity Loan Information - What Is A Home Equity Line Of Credit?

Did you know that if you have a home that... Read More

Are You Ready for Your Students Student Loans?

Your son or daughter is a high school senior and... Read More

Getting the Best Auto Loan Rates

Getting a good auto loan rate is not luck, but... Read More

Instant Payday Loan and Instant Payday Loans

Instant payday loans are financial loans that are available for... Read More

A Payday Loan Or Cash Advance Can Be A Life Saver

A payday loan or cash advance can be a life... Read More

Compare Payday Loan or Cash Advance Lenders Online Before You Borrow

Comparing payday loan lenders, also called cash advance lenders, online... Read More

Get a Low Rate on a Secured Online Loan

Secured loans have become very popular over recent years, with... Read More

What is a Student Loan?

Not everyone is aware of what is a student loan?... Read More

What is an Unsecured Loan?

An unsecured loan is a personal loan where the lender... Read More

A Method Used For Evaluating Online Lenders

Online lenders might be high quality, serious companies such as... Read More

What?s All the Hype about Omni Military Loans?

The average person some time in their adult lives will... Read More

The Average Profile of Customers Opting for a Payday Loan Cash Advance

Payday loans are loans of a small amount, taken for... Read More

Cant Wait For Payday? Try Check Advance

Check advance can come in really handy when you're waiting... Read More

Shopping for a Personal Loan

Most Internet users are now extremely comfortable using the Internet... Read More

Applying for a Loan Online

If you want to apply for a loan online, you... Read More

SBA Loan: Qualifying and Applying

According to federal government research, small businesses provide about 75%... Read More

How To Save Money On Car Loans

Have you noticed that everyone seems to have a newer... Read More

A Look at Common Types of Loans

People sometimes wonder about common types of loans, especially with... Read More

No Income Verification Home Equity Loan

A no income verification home equity loan is a second... Read More

Student Loan Limits Not Keeping Up with Tuition Rates

As tuition rates at many colleges continues to rise, the... Read More

What Are VA Loans?

VA loans are basically mortgages or home loans geared towards... Read More

Many People Have Realized the Convenience and Benefits of Online Personal Loans

The Internet has provided a whole new dimension to obtaining... Read More

Getting Good Value Personal Loans

Over recent years, personal loans have become a popular solution... Read More

Cash Advance Company - Comparing Payday Loan Companies Online

Comparing payday loan companies online saves you time and money.... Read More

Guide to Homeowner Loans

Here is a useful guide to Homeowner Loans. A Homeowner... Read More